My New Blog

Its been a bit of time from my last post and what I have been doing is a battle to say the least. Let me tell you friends, if you plan on entering the REO buyers market be ready! Bring a shield and sword and get set for the fun!

I have three files on my desk that are approaching 2 inches thick! Offers made, offers lost, offers made, offers lost.... I am not talking about low ball offers! I'm talking about 500 to 3000 over asking! This market is tough to break into and will require a dedication from both Buyer and realtor to get it done.

The keymasters of this area usually have some type of "go to" guys and they are playing this game well. If there is any doubt that some class separation may occur well this market is a great example of some getting all the deals and others not being able to touch them. What chance does a small time homeowner have against a cash rich investor with greed and exploitation in mind? Not much! Over the next qtr I hope that some type of stop gaps are put in place that help "spread the wealth" in the REO properties sector. Rarely are the end users of these properties getting a chance to get them. The systems are just not set up for it.

In short, Be ready for a massive fight if you are FHA and buying and you stand a chance at a Conv. purchase but.... still its no "Game" out there.. Hold on to a good Realtor, be aggressive and don't give up! Don't fall in love with any particular property and you may stand a chance of getting a home at a 20% +/- discount off Market.

It can be done but WOW... I suggest cracking a good deal on a short sale, heck 2 of them at the same time is ok too, and wait it out. Store your cash as a squirrel does and you'll be smiling towards closing rather than stress out and settling.. If you still want the bigger discount and want to take a run.. Good for you! I applaud your spirit and hope you come out smelling like roses! 

 The header says it all! What all professionals are hoping the consumers are thinking and what many "on the fence" Buyers may very well be thinking at this historic time. Great deals! Home sales are up! Prices down! Sort sales, REO's and low interest for those who can qualify..

 I don't know about you, but 2009 was tough for many people. Homes and households were destroyed. Financial placidity wrecked and replaced with turmoil and uncertainty. Dismal markets and for those of us who have managed to find a niche here amongst the ruin well we have seen first hand the devastation this real estate market has had on the real people that were affected. Was this just media hype? No way! Sometimes I got tired and still do of the negative spin the media can put on things that I feel may just fuel the disaster but the accounts I have seen are not CNN reels to us that are in the trenches but are real problems that require real hard work to even stand a chance that there will be ANY relief for these people. I take my hat off to those who are delicately working with people that are very emotional, weather they are the frustrated Sellers trying to loosen the grip of fear or Buyers trying to not pay too much but still get "A Steal" and have the old restaurant employee negotiating a tough stance of the bank while loosing paperwork or the heavy buying competition of investors and are loosing bids for their primaries. Brighter days are ahead!

 Sure Obama has the answers, sure the Fed will fix it all! Umm, No my friends, the bottom line is that there is a healing process that will be taking place and pardon the analogy but "the scab is forming". Yes, we as know it all's, will probably end up picking at it a bit and prolonging the agony but in the end we will breath easier. Its the cyclical nature of all markets and just a matter of absorbtion. This will be no instant rebound! The jobs market is critical and businesses are just coming out from hiding to "peek" out from their fox holes. but they are peeking! (they just cant help it).

I need not predict the future for you to see that there is activity now right? You can just ask any real estate agent to log on MLS and see the activity just last month to know that things are moving. Regardless, we are going to come out of this in a new world with new rules. Banks, Lenders, Brokers and even maybe the attorneys may have a new "standard" manual. All the rules may be a bit different but... We will survive.... My wish for you... to THRIVE!

Do what you can in your circle. Keep it clean and just. Head out the door this 2010 with cautious optimism. Don't be afraid to take some thought out steps that involve well a little risk. Real estate always had that (except for the brief three years of massive explosion). We got so quickly used to the overnight successes of real estate that we forgot that the old way wasn't too bad. Hard work, care in your decision making and you can own the American dream and maybe make a buck! Those days ARE back!!!!! isn't THAT refreshing!!!!!!

Stay Well Always,

Ken Close

New information coming out of the Capital today that the Powers that be will in fact extend the Tax credit for 1st time home buyers with a few extra twists to it.

1. The credit will stay the same for 1st time home buyers but will be reduced to $7,290 (or 10% of the Purchase price).

2. Homeowners that have been in their house for 5 years or more may "step up" to a new home and qualify.

The income limitations for the first time home buyers will stay the same ($75K to $125K ) however, the "step up" buyers will be allowed $125k - $250.

This does not give the investors what they wanted but it is a step in the right direction!

See the article here : http://www.dsnews.com/articles/senators-say-homebuyer-tax-credit-is-in-bag-update-2009-10-28